Nifty seen opening higher on mixed Asian markets

NEW DELHI: The 50-share Nifty index is expected to open flat-to-higher on Tuesday following mixed Asian markets.

BSE Sensex slipped 2.6 percent on Monday to its lowest close in more than six weeks weighed down by depreciating rupee and deteriorating global economic environment.

The rupee touched its lowest in 32-and-a-half months as local oil importers bought dollars.

Indian markets are likely to come under further pressure on Tuesday as expiry pressures coupled with continuously deteriorating global cues are sure to take the Nifty down further.

"The 50-share Nifty index is likely to descend to level closer to 4700 over the next few sessions as expiry pressures kick in," said Kunal saraogi, CEO, Equityrush.

"Traders should refrain from bargain hunting just yet as there are no conclusive signs as yet that the markets are bottoming out," added Kunal.

"We are trading at a time when markets are trading around 4700 level on Nifty. So, shorting right next to 4700 may not be the smartest of ideas but the market looks weak as it is not able to bounce back from any of the supports.

"It is very difficult to say that markets will break 4700 on Nifty, but if it does the markets may head towards 4200. So at best, we could chop around here, 4500-4700, 200-300 point range. Meanwhile, the midcap space will probably give you much more traction on the downside," said Ashwani Gujral of ashwanigujral. com.

U.S. stocks fell for a fourth session on Monday, followed by sharp losses in commodities. The S&P quickly fell through the 1,200 level seen as the next level of support.

"A special U.S. congressional committee was expected to concede failure to reach a deal after three months of talks to slash the deficit," according to a report.

The Dow Jones industrial average was down 248.85 points, or 2.11 percent, at 11,547.31. The Standard & Poor's 500 Index was down 22.66 points, or 1.86 percent, at 1,192.99. The Nasdaq Composite Index was down 49.36 points, or 1.92 percent, at 2,523.14.

Asian shares fell on Tuesday as fears about the ability of politicians in US & Europe to tackle huge debt burden kept investors on the sidelines.

Force Motors Ltd after the commercial vehicles maker has decided to sell its 50% stake in MAN Force Trucks Pvt. Ltd to its German joint venture (JV) partner and quit the heavy duty trucks segment.

Nitesh Estate Ltd after JP Morgan Global Fund has picked up 45% shareholding in a Nitesh Estates' firm for $40 million ( 204 crore), in a rare pure play private equity deal in a slow real estate market.

"The Delhi High Court today issued a notice to the economic offence wing (EOW) of the city police on a plea by an investors' group seeking investigation against Religare Securities Ltd and its officials for allegedly "duping and defrauding" them," according to a report.

Sugar stocks will be in focus after the meeting of the Empowered Group of Ministers (EGoM) on Food scheduled for today to decide on granting permission for sugar exports.